Putting Your Farm’s Future in Writing

Wednesday, December 24, 2025

Why a carefully drafted will is essential to preserving generational success

By Mary Loggan

Farmers are accustomed to planning ahead. They track markets, prepare fields, and anticipate changing weather. Yet when it comes to preparing for one of the most consequential events in their family’s future – what happens after they’re gone – too many leave the question unanswered.

A will is not only a legal formality – it is the foundation of a sound succession plan that safeguards the land, the business, and the people connected to it.

Without it, families risk confusion, high taxation, and fractured relationships that can unravel generations of work.

The reality is that agriculture sits at the intersection of emotional, financial, and legal complexity: Farms are both businesses and homes. Managing that overlap requires clarity and planning that few other industries must navigate.

Better Farming recently connected with Todd Devitt, lawyer at McKenzie Lake Lawyers in London, to explore why every farmer needs a carefully crafted will, how to structure one fairly, and what steps ensure the smoothest possible transfer of the family legacy.

Risks of not updating your will

According to Devitt, the consequences of dying without a will can be severe and far reaching.

“A will is a key part of proper succession planning,” he explains.

“It must complement financial, accounting, and insurance strategies to truly protect the family business.”

When a farmer passes away without a valid will, their estate transitions under provincial intestacy laws. This process disregards personal intent, defining who inherits assets according to legislation and not family or business logic.

Devitt notes, “Many legal and financial risks arise for a farmer who dies without a will or proper succession plan in place, most of which concern taxes.”

He emphasizes that “not having a will which complements your succession plan can result in hundreds of thousands or even millions of dollars in additional taxes being paid to the government.”

For family-run farms, where wealth is often tied up in land and equipment rather than liquid cash, that can mean selling acreage simply to pay unforeseen tax obligations.

Beyond the accounting nightmare, there are equally significant legal challenges.

“From a legal risk perspective, not having a will means you do not have full control over which descendants will receive which assets, and having a non-farming child receive the farming assets over an eager successor could spell doom for the longevity of a family farming business.”

For families that lack direction, it can divide siblings, stall operations, and sometimes lead to the disintegration of the farm.

Where a written plan provides clarity and control, the absence of one can create both financial and emotional chaos.

Devitt explains, “The government will not wait to collect its share, but the operations of the farm might have to wait indefinitely for the estate to clear probate.”

The tragedy, he says, is that it’s all preventable.

“Time and again, we see these situations unfold not because families resisted good advice, but because they believed they still had time. Succession isn’t just for retirement – it’s an everyday responsibility.”

Key steps for creating fairness

No part of succession planning tests family relationships like dividing assets between farming and non-farming children, Devitt says.

“This is the biggest hurdle we face when starting a farming succession plan and will.

“Modern farming families often have children who are eager to carry on the family business, and others who have reaped the benefit of their parents’ labour by having their professional degree fully paid for.”

The fundamental debate usually revolves around the perceived equality of inheritance.

“It’s important to recognize that ‘fair’ does not always mean ‘equal.’”

For example: “A $5 million farm business – land and equipment-rich but cash-poor – can be considered an obligation rather than a windfall. The farming child who takes this on is agreeing to 12 hour days and heavy operational responsibility.

“Meanwhile, a non farming child who perhaps already has a successful career might find far more value in receiving $2 million in obligation free cash. From that perspective, both inheritances could be ‘fair,’ even if their dollar values differ.”

This approach requires family transparency and, as Devitt stresses, structured communication.

“With a family meeting to discuss what everyone truly wants, we can often use a combination of tax planning, insurance, and wills to structure a succession plan that benefits everyone fairly – even though the amounts may not be technically equal.”

He believes that honesty and flexibility at the early stages create understanding later.

“Families who enter the conversation assuming conflict will find conflict. But families who enter the conversation seeking fairness and clarity generally achieve it.”

Consultation, he says, is key to a healthy process. Advisors can help identify creative routes, including insurance for compensation balancing or corporate restructuring, to give each child a meaningful share aligned with their role. What matters most is aligning expectations – with all stakeholders at the table – before crisis forces the conversation.

Planning ahead

“The best thing a farmer can do is to assemble a strong advisory team: A lawyer, accountant, financial advisor, and insurance advisor to review and structure a succession plan specifically tailored to them. Every plan is different.”

He stresses the need for a multi disciplinary approach because taxes, probate law, and asset transfer options are deeply intertwined.

“There are multiple legal and tax tools available,” he notes.

“Share freezes, family trusts, dual wills, and even life insurance – some of which can be owned by the family farm as a tax write off – are among the tools we use to structure efficient plans that minimize taxes and maximize family wealth.”

Each mechanism serves a distinct function:

• Share freezes lock in the current value of shares so future appreciation benefits the next generation.
• Family trusts help distribute wealth and income flexibly while protecting assets from external claims.
• Dual wills separate corporate and personal assets, often lowering probate fees.
• Life insurance can offset tax costs or supply liquidity to balance inheritances.

“These instruments allow farmers to maintain stability while transferring ownership in stages, without jeopardizing operational control.”

For families aiming to avoid sudden disruptions, these incremental solutions can make the difference between seamless continuity and costly transition.

“Start immediately. It is never too early to start your succession plan, but there will be a point when it’s too late. Start it now and enjoy the peace of mind.”

Procrastination remains a widespread obstacle. Many producers put off the task, expecting to revisit it after a ‘good crop year’ or retirement.

Devitt warns, “Life events don’t wait for the right season. Planning now means your family won’t have to make decisions during an already difficult time.”

Another oversight he often encounters is the failure to update.

“It’s worthwhile for everyone – not just farmers – to review their will every five years,” he stresses.

“A lot can change in that timeframe: The family structure, the business scale, and certainly the law.”

Events such as births, deaths, marriages, or separations can all influence how farms should handle assets. Tax rules evolve as well, sometimes altering the treatment of capital gains, gifted property, or corporate reorganizations.

“This is why having a strong advisor team is critical – they’ll alert you when legislative or tax changes could impact your existing succession plan.”

In rural Ontario and across Canada, Devitt says, he’s seen strong patterns emerging.

“Farm families who build advisor relationships early tend to make better, faster decisions when challenges arise. Those who wait until they’re facing a health crisis or a government filing deadline are usually left with limited, expensive options.”

Once a farmer has assembled the right advisors, the first step is introspection.

“The first thing a farmer must do is think critically about what they would like to see happen – and which children are likely to continue as farmers and which are not.”

Clear personal goals serve as the compass for every later discussion. From there, the essential next stage is the family meeting. Devitt outlines a three part approach:

1. Parents explain and answer questions about what they intend to happen;
2. The children confirm that their hopes and expectations align with those intentions; and
3. Everyone agrees to maintain flexibility early on, so the final plan maximizes each person’s needs and values.

“When parents, children, and advisors collaborate openly, the process produces a plan that is fair – and not merely equal.”

Farmers who treat the process as an investment rather than an inconvenience tend to preserve far more than just capital. They preserve relationships, stability, and the very spirit of the family farm – that commitment to continuity that defined the generations before them.

He says that whether your farm is incorporated, a sole proprietorship, or a partnership among family members, succession planning is not a legal luxury but a business necessity. It transforms uncertainty into strategy, ensuring that ownership transfers are intentional and orderly rather than reactive.

Planning for one’s own death is not an easy topic, especially when so much personal identity and pride are wrapped up in the farm.

“You can’t control when the end comes – but you can control what happens after.” BF

SIDEBAR:

KEY TAKEAWAYS:

• Start your legal planning early, instead of waiting for retirement or a crisis. Protect farm assets and family relationships by reducing confusion and financial risk.
• Open family communication is vital. Discussing intentions and expectations in a group setting clarifies inheritance and helps avoid future disputes about farm ownership and asset division.
• Legal tools such as wills, trusts, and powers of attorney should be used to put wishes in writing, minimize taxes, and ensure that the right heirs receive the appropriate assets.
• Plans must be reviewed and updated regularly as family circumstances, business scale, and laws change, to keep asset transfer aligned with current intentions and tax advantages.